Croatia-based food producer and distributor Atlantic Group reported 15.4% growth in net profit during Q1 2017, to €7 million.
However, total sales were down by 2.9%, to €105.1 million, largely due to the termination of a contract with a leading private label buyer in the Sports and Functional Food segment, the company said.
Sales Impact
Also impacting the results was a decrease in sales to the group's single biggest buyer, Croatian retail group Agrokor, due to the emerged liquidity problems and insolvency. Atlantic Group succeeded in alleviating this drop thanks to increased sales to other buyers.
The highest growth was achieved by the following business units: Savoury Spreads (9.0%), Pharma and Personal Care (7.2%), Snacks (2.4%), Coffee (1.4%) and Beverages (0.3%).
With €28.8 million in sales and a 19.1% share in the Group’s total sales, its Coffee business unit stands out as the largest individual category within the group.
Overall, the highest growth (+6.3%) was recorded in the markets of Russia and other CIS countries (4.6% of total sales) and Bosnia-Herzegovina with 5.9% (8.2% of total sales). Croatia, as the biggest market (28.8% share), recorded growth of 5.2%, while the second biggest market, Serbia (22.4% share), grew by 2.5%.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
